Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Canada
  4. Bourse de Toronto
  5. Otso Gold Corp.
  6. News
  7. Summary
    OTSO   CA68916P1045

OTSO GOLD CORP.

(OTSO)
Delayed Quote. Delayed Bourse de Toronto - 09/17 03:27:38 pm
0.085 CAD   --.--%
08/19Otso Gold Corp. Updates Mineral Resource Estimate
CI
08/19OTSO GOLD : IIROC Trading Resumption - OTSO
AQ
08/19OTSO GOLD : IIROC Trading Halt - OTSO
AQ
SummaryQuotesChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Otso Gold : Completes US$11 Million Strategic Investment and Begins to Move to Production

02/08/2021 | 05:01pm EDT

(via TheNewswire)



Toronto, ONTheNewswire -February 8, 2021Otso Gold Corp. (“Otso” or the “Company”), (TSX.V:OTSO)is pleased to announce that it has now closed its previously announced arm’s length financing with Brunswick Gold Ltd (“Brunswick Gold”) for a strategic investment of US$11 million in the Company (the “Financing”).  Pursuant to the Financing, Brunswick Gold was issued 284,944,440 units (each, a “Unit”), at an issuance price equal to $0.05 per Unit. 25,904,020 of such Units were used to settle the principal on the US$1 million unsecured loan (the “Loan”) owed to Brunswick Gold.  

The net proceeds from the Financing after repayment of the Loan will fund the Company to enable it to restart its detailed directional diamond drilling program to inform a robust geological model, updated technical report, detailed mine plan as well as upgrades on site to underpin the previously announced return to production.

Details of Financing

As previously announced, the Financing was based on a CDN$ / US$ exchange rate of $1.29520 and was approved by the Company’s shareholders at the annual and special meeting (the “Meeting”) of shareholders held on January 20, 2021.

Each Unit consists of one common share in the capital of the Company (each, a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”).  Each Warrant will entitle the Brunswick Gold to purchase one Common Share at an exercise price equal to $0.05 per Warrant for a period of five years from the date of issuance.

As described in the management information circular prepared in connection with the Meeting and as provided pursuant to the terms of an investor rights agreement dated December 13, 2020, the Company’s board of directors (the “Board”) now consists of seven directors – namely Brian Wesson, Clyde Wesson, Yvette Harrison and four new nominees from Bruswick Gold (namely Vladimir Lelekov, Nicolas Pascault, Victor Koshkin and Martin Smith).  Additionally, Mr. Vladimir Lelekov has been appointed as Chairperson of the Board. To facilitate the incoming Board members, Mr. Christopher Towsey resigned as a director of the Company and will remain as a consultant to Otso.

As also previously announced and as set out in the management information circular, on closing of the Financing, B&A Wesson Pty Ltd (“B&A”) and C&C Wesson Pty Ltd (“C&C”) were issued (in aggregate) 32,380,050 “top-up” Common Shares and PFL Raahe Holdings LP (“PFL”) was issued 31,909,280 “top-up” Common Shares.  Accordingly, as a result of the Financing, on a non-diluted basis, Brunswick Gold now owns 46.03% of the Common Shares; PFL now owns 12.79% of the Common Shares and each of B&A and C&C now own 6.69% of the Common Shares.

In connection with the 31,909,280 Common Shares issued to PFL on closing, such issuance fully settles the Company’s outstanding debt to PFL in the amount of US$1,231,826.21.

All  securities  issued pursuant to the Financing  are subject  to  a  statutory  hold  period of four months and one day from the date of issuance, in accordance with applicable Canadian securities legislation.

For further information, please contact:

Clyde Wesson
Vice President
1 917 287 0716

info@otsogold.com
www.otsogold.com

Caution

The Company cautions that it has not defined or delineated any proven or probable reserves for the Otso Mine Project and mineralization estimates may therefore require adjustment or downward revision based upon further exploration or development work or actual production experience. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The Company also cautions that the decision by the Company to proceed to develop the Otso Mine Project and extract mineralization proceeded without the Company first establishing reserves supported by a technical report and completing a pre-feasibility or feasibility study.  Accordingly, there is a higher risk of technical and economic failure at Otso because development proceeded without first establishing reserves supported by a technical report and completing a feasibility study.  This is particularly relevant as the Company has proceeded with development at Otso on indicated and inferred resources without first completing a preliminary economic report.

Forward-looking Statements

This press release contains forward-looking statements regarding the Company based on current expectations andassumptions of management, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are forward-looking statements under applicable Canadian securities legislation. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution our readers of this press release not to place undue reliance on our forward-lookingstatements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's continuous disclosure documents that can be found on SEDAR (www.sedar.com) under the Company’s issuer profile. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

About the Company

Otso Gold Corp. wholly owns the Otso Gold Mine near the town of Raahe in Finland. The Otso Gold Mine is developed, fully permitted, has all infrastructure in place, twoopen pits and is progressing towards production in 2021 to process ore at name plate capacity of 2 million tonnes per annum.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

43299372.3

Copyright (c) 2021 TheNewswire - All rights reserved.

Copyright (c) 2021 TheNewswire - All rights reserved., source Press Releases

All news about OTSO GOLD CORP.
08/19Otso Gold Corp. Updates Mineral Resource Estimate
CI
08/19OTSO GOLD : IIROC Trading Resumption - OTSO
AQ
08/19OTSO GOLD : IIROC Trading Halt - OTSO
AQ
08/19OTSO GOLD : Updated Mineral Resource Estimate
AQ
08/11OTSO GOLD : Executes Mining Contract for the Restart of Production in September
AQ
07/21OTSO GOLD : Announces Proceeds of US$11.155 Million from Warrant Exercise and Co..
AQ
06/29Otso Gold Corp. Reports Earnings Results for the First Quarter Ended April 30..
CI
06/14OTSO GOLD CORP : . - Appointment of Chief Financial Officer
AQ
06/11Otso Gold Corp. Announces Appointment of Andrey Maruta as Chief Financial Off..
CI
06/11OTSO GOLD : Appointment of Chief Financial Officer
AQ
More news
Financials
Sales 2021 - - -
Net income 2021 -15,4 M -12,0 M -12,0 M
Net Debt 2021 31,3 M 24,5 M 24,5 M
P/E ratio 2021 -0,64x
Yield 2021 -
Capitalization 76,8 M 60,3 M 60,1 M
EV / Sales 2020 -
EV / Sales 2021 -
Nbr of Employees -
Free-Float 13,9%
Chart OTSO GOLD CORP.
Duration : Period :
Otso Gold Corp. Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Managers and Directors
Brian S. Wesson President, Chief Executive Officer & Director
Andrey Viktorovich Maruta Chief Financial Officer
Vladimir Lelekov Chairman
Dace Church Administration Manager
Yvette Harrison Independent Director
Sector and Competitors
1st jan.Capi. (M$)
OTSO GOLD CORP.125.00%61
FRANCO-NEVADA CORPORATION10.58%26 579
GOLD FIELDS LIMITED-14.76%7 217
ENDEAVOUR MINING PLC0.71%5 856
EVOLUTION MINING LIMITED-24.05%5 233
CHIFENG JILONG GOLD MINING CO.,LTD.-10.83%4 226